Appendix C

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Matching rectangle Form 57 and instructions for completion

Two Versions:

The Insurance Companies (Accounts and Statements) Regulations 1996 SI No. 943 and The Insurance Companies (Accounts and Statements)(Amendment) Regulations 1997 SI No. 2911

SI 1996 No. 943: FORM 57

Transcript of instructions for completion of form 57 in Schedule 4 to SI 1996 No. 943

Instructions for completion of Form 57

     
  1.  The word ‘Total’ or the name of the fund shall be shown against the heading ‘Category of assets’. The corresponding code box shall contain ‘10’ for the total assets and, in the case of separate funds, code numbers corresponding to those allocated on completion of Form 13.
    2.  
  2.  Separate forms shall be prepared for sterling and nonsterling liabilities. The box marked ‘Stg/NonStg’ shall be completed by the insertion of ‘Stg’ for sterling liabilities and ‘NonStg’ for nonsterling liabilities.
  3. Separate forms are required for with profit and nonprofit contracts within the following types of business
      1.  life assurance and annuity businesses
      2.  pension business
      3. permanent health business
      4. other business
    The box marked ‘L&GA/Pens/PHI/Other’ shall be completed by the insertion of ‘L&GA’, ‘Pens’, ‘PHI’ or ‘Other’ respectively for each of the types (i), (ii), (iii) and (iv) specified above. The box marked ‘WP/NP’ shall be completed by the insertion of ‘WP’ for with profits policies or ‘NP’ for nonprofit policies both as defined in Regulation 3.
  4.  Separate forms shall be prepared for each rate of interest used in the valuation and may include all contracts valued at the same rate. The rate of interest shall be shown against the heading ‘Rate of Interest’ and in the corresponding code box.  
  5. The forms specified above shall exclude the liabilities described in paragraph 21(1)(a) to (c) of schedule 4, and must cover at least 90% of the remaining long term liabilities.
    The balance of the remaining long term liabilities shall be shown in a separate form in which columns 3 and 4 may be left blank, and details of the contracts covered by the form shall be given in a note. The word ‘Balance’ shall be shown against the heading ‘Rate of Interest’ and the corresponding code box shall contain ‘98’.
  6.  A summary of all the separate forms shall be produced as a separate form in which columns 2, 3 and 4 may be left blank. The word ‘Total’ shall be shown against the heading ‘Rate of Interest’ and the corresponding code box shall contain ‘99’.
  7.  The risk adjusted yield in column 2 for each asset shall be calculated as in Regulations 69(3) to (6) of the Insurance Companies Regulations 1994, taking account of any adjustment considered necessary because of Regulation 69(7). Where a number of assets with different risk adjusted yields are held, the weighted average risk adjusted yield shall be calculated using as weights the value of the asset applicable for entry into column 1.  
  8.  The value of each asset shown in column 1 shall be the value attributed to it in Form 13 and the assets will be grouped according to instruction 1 to Form 48 including adjustments in respect of accrued interest as required by that instruction.
  9. Where the valuation has been carried out at a net rate of interest the figure in column 3 shall be the next rate grossed up at the corresponding effective rate of tax.
  10. The mathematical reserve in column 5 will include any increase in reserve resulting from the bonus declaration for the year and shall be net of reassurance ceded.
  11. The entries shown at line 39 shall be those applicable to the scenario described in the answer to paragraph 7(8) of Schedule 4, and details of any material changes to the notional allocation of assets made in investigating that position shall be given in a supplementary note.

SI 1997 No 2911: FORM 57

Instructions for completion of Form 57

     
  1.  The word “Total” or the name of the fund shall be shown against the heading “Category of assets”. The corresponding code box shall contain “10” for the total assets and, in the case of separate funds, code numbers corresponding to those allocated on completion of Form 13.
    2.  
  2.  Separate forms shall be prepared for sterling and nonsterling liabilities. The box marked “Stg/NonStg” shall be completed by the insertion of “Stg” for Sterling liabilities and “NonStg” for nonsterling liabilities.
  3. Separate forms are required for with profit and nonprofit contracts within the following types of business    
    1.  life assurance and annuity businesses
    2.  pension business
    3. permanent health business
    4. other business  
  4.  The box marked “L&GA/Pens/PHI/Other” shall be completed by the insertion of “L&GA”, “Pens”, “PHI” or “Other” respectively for each of the types (i), (ii), (iii) and (iv) specified above. The box marked “WP/NP” shall be completed by the insertion of “WP” for with profits policies or “NP” for nonprofit policies both as defined in Regulation 3.
    5.  
  5.  Separate forms shall be prepared for each rate of interest used in the valuation in pursuance of regulation 69(12) of the Insurance Companies Regulations and may include all contracts valued at the same rate, subject to instructions 2 and 3 to this Form. Contracts valued at a lower rate of interest but subject to the same apportionment of assets may also be included provided that the rationale for such inclusion is given in a supplementary note. Each of the valuation rates of interest used shall be itemised against the heading “Valuation rate(s) of interest”. The highest valuation rate of interest used shall be shown in line 31 or 32 as appropriate and in the code box headed “Valuation rate of interest”.
  6. The forms specified above shall exclude the liabilities described in paragraph 21(1) (a) to (d) of Schedule 4, and must cover at least 90% of the remaining long term liabilities.  
  7. The balance of the remaining long term liabilities shall be shown in a separate form in which lines 31 and 32 shall be left blank, and details of the contracts covered by the form shall be given in a supplementary note. The word “Balance” shall be shown against the heading “Valuation rate(s) of interest” and the corresponding code box shall contain “98”.
    8.   
  8. A summary of all the separate forms shall be produced as a separate form in which lines 31 and 32 shall be left blank. The word “Total” shall be shown against the heading “Valuation rate(s) of interest” and the corresponding code box shall contain “99”.
    9.  
  9. The risk adjusted yield in columns 2 and 6 for each asset included in column 1 and 5 respectively shall be that calculated as in Regulations 69(3) to (6) of the Insurance Companies Regulations 1994, taking account of any adjustment considered necessary because of Regulation 69(7). Where a number of assets with different risk adjusted yields are held, the weighted average risk adjusted yield shall be calculated using as weights the value of the asset applicable for entry into columns 2 and 6.
  10. The value of each asset included in column 1 shall be the value attributed to it in Form 13 and the assets will be grouped according to instruction 1 to Form 48 including adjustments in respect of accrued interest as required by that instruction.
  11. Where the valuation has been carried out at a net rate or rates of interest the figure in line 31 shall be the net rate grossed up at the corresponding effective rate of tax in respect of the highest valuation rate of interest used in the Form.
  12. The mathematical reserve in line 33 will include any increase in reserve resulting from the bonus declaration for the year and shall be net of reassurance ceded. The entries shown in columns 3, 4, 5 and 6 shall be those applicable to the scenario described in the answer to paragraph 7(8) of Schedule 4. The entries in column 3 shall be the value of the assets shown in column 1 according to the changed assumptions of that scenario. The entries in column 4 shall be the value of assets on the changed assumptions for each type of asset notionally reallocated to cover the mathematical reserve or other liability, net of reinsurance, in the resilience scenario. The entries in column 5 shall equal the sum of the entries in columns 3 and 4.
  13. The entries in line 29, column 1 shall equal the entries in line 33, column 1. The entries in line 29, column 5 shall not be less than the entries in line 33, column 5.

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